GDP at 3.8% in 2006 after 3.9% in 2005

Exports and imports revised down

First revisions to the national accounts of Cyprus have brought down figures for exports and imports of goods and services while maintaining the overall GDP growth rate at 3.8% in 2006, after 3.9% in 2005.

National accounts of a country give the full breakdown of gross domestic product (GDP) and gross value added, (GVA). 

Initial estimates made by the Statistical Services CYSTAT last November put the volume of exports of goods and services compared with the previous year at 4.0% in 2006, after growth of 4.7% in 2005. This has now been revised down to only 2.1%.

Meanwhile, imports of goods and services growth in 2006 has been revised down from an initial 8.7% to only 2.2%.

In national accounts calculations, imports are subtracted from exports, which is largely why the big revisions had no impact on the bottom line GDP growth figure of 3.8%.

The main reason for the revisions is new data that comes in from enterprises and institutions such as the customs authorities and Central Bank.

A CYSTAT official said that later revisions to services data may be necessary depending on information that will be received later in the year.

Financial services up 9.1%

The data confirm that 2006 was another bumper year for the financial sector, with booming bank profits behind a growth rate of 9.1%, compared with 9.2% in 2005.

Fiona Mullen